He talks about it all the time in our office. So, being the good employees and friends that we are, we handed him a Samsung S III. It has a 4.8-inch screen.

What did he do with the S III? Thank us? Stop complaining about the small screen on his iPhone? Nope! He just let it sit there.

Why? He's a creature of habit. He had no desire to learn Android. He likes his iPhone operating system and doesn't want to learn a new system.

His strategy, instead, to get a bigger smartphone is to complain loudly, and often, about Apple not making a 4.8-inch iPhone. He often veils it behind the notion of analysis of Apple's business. Which is what he did today.

If screen size was really a problem for Apple, then it would be getting trounced in the U.S.

Here's more evidence screen size isn't the issue: On Apple's earnings call, management said it had trouble meeting demand for the iPhone 4, which has a relatively tiny 3.5-inch screen. If people truly hated small screens they would skip the iPhone 4 and buy an Android with a big screen that costs the same amount.

Outside of the U.S. Apple is losing because it's not a level playing field. Elsewhere in the world, carriers don't subsidize the cost. So, the iPhone is selling for $600-$800, versus $300-$600 or less for Android phones.

There's another problem internationally. At Goldman Sachs' technology conference this week, Tim Cook pointed out that the iPhone is only available on 50% of the world's carriers. That means Apple is missing out on half the market.

This again is a pricing problem. A lot of those carriers don't want to agree to Apple's terms for subsidies. They also don't want to give Apple as much control as it wants.

If Apple really wants to take market share, then it needs to get on more carriers and sell a less expensive phone. The screen size doesn't matter.

Selling a cheaper phone presents its own problems for Apple. It means Apple's sales and profits are going to take a hit. And its phenomenal growth will come crashing down.

These are the real problems Apple has to confront, not whether or not it should make a bigger iPhone.

Because, while a bigger iPhone would be nice, the market has already shown that it's not make or break for Apple.